Germany has three months to stem euro crisis - Soros

Page last updated at 16:00 GMT, Saturday, June 2, 2012 - 21:00 EST

Reuters India:

Soros Fund Management Chairman George Soros speaks during a news conference at the World Economic Forum (WEF) in Davos, January

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Speaking at an economic conference in Trento, Italy, Soros said that the euro crisis - which he defined as a sovereign debt crisis and a banking crisis closely interlinked - threatened to destroy the European Union and plunge it into a lost decade like Latin America in the 1980s.

"A similar fate now awaits Europe. That is the responsibility that Germany and other creditor countries need to acknowledge. But there is no sign of this happening," Soros said.

Soros said he expected Greek elections in June to produce a government willing to stick by the current bailout agreements, but which would find it impossible to do so.

"The Greek crisis is liable to come to a climax in the fall. By that time the German economy will also be weakening so that Chancellor (Angela) Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities. That is what creates a three-month window," he said.

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